US Government Opens Back Up, But Deep Political Divisions Remain

• The United States (U.S.) government lumbered back to life on Thursday, November 13, 2025, after the longest shutdown in U.S. history snarled air traffic, cut food assistance to low-income Americans and forced more than 1 million workers to go unpaid for more than a month. But the deep political divisions that caused the 43-day shutdown in the first place remain unresolved.
• The shutdown also exposed divides within the Democratic Party between its liberal base, which demanded its leaders do whatever is necessary to rein in Trump, and moderates who feel their options are limited so long as Republicans hold majorities in both chambers of Congress.
• Although Republicans control both the House of Representatives and the Senate, along with the Executive Branch, they needed support from Senate Democrats to overcome procedural hurdles in the Senate to reopen the government – support they gained from eight moderate Senate Democrats. This group of Senate Democrats – none of whom are up for reelection in 2026 – joined Republican colleagues to support a stopgap bill that funds the federal government through to January 30, 2026, and includes three full-year funding bills for several government agencies as part of a “minibus” funding package.
• Although the deal will only fund the government through January 30, 2026, the benefits will be swiftly felt. The shutdown’s negative impact and pressure on Senate Democrats mounted with cancelled SNAP food benefits, major travel disruptions from Federal Aviation Administration (FAA) flight reductions, widespread furloughs and layoffs, and a White House threat that payments for 600,000 furloughed workers could be withheld. The agreement to reopen the government will ensure that myriad federal services resume, which is likely to boost confidence among households and businesses. Crucially, it also restores economic data releases, which are essential for US economic policymaking and for the functioning of financial markets.
• Despite these benefits, Senate Democrats are walking away from the record-setting shutdown largely empty-handed. The deal does not include an extension of Affordable Care Act subsidies, a top priority for Democrats in shutdown negotiations.
• Congressional Democrats quickly criticised the deal, lambasting Minority Leader Chuck Schumer for failing to stand up to Senate Republicans and the White House – despite Schumer himself voting against the deal – with some House Democrats calling for his removal as Senate Minority Leader.

(Sources: Reuters, BMI- A Fitch Solutions Company)